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With dozens of S&P 500 index companies reporting earnings this week, here are five you don’t want to miss: Netflix (NFLX), Microsoft (MSFT), Apple (AAPL) supplier Skyworks Solutions (SWKS), Bank of America (BAC) and Morgan Stanley (MS). All five are in sound bases and near buy points.
XAutoplay: On | OffNetflix reports Monday, Bank of America Tuesday, Morgan Stanley Wednesday, with Microsoft and Apple supplier Skyworks on Thursday.
Futures for the S&P 500 index and Dow industrials rose about 0.1% vs. fair value Sunday evening. Nasdaq 100 futures climbed 0.25%.
Netflix climbed 1.8% to 161.12 in Friday stock market trading, closing in on a 166.97 flat-base conventional buy point. However, an aggressive investor could see 160.07 as an alternative buy point that Netflix has crossed Friday.
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Netflix earnings Monday evening should show a 78% gain to 16 cents a share excluding various items, according to analysts tracked by Zacks Investment Research. Revenue likely climbed 31% to $2.76 billion. But subscriber growth may still be more important than earnings for investors. Netflix projected it would added a net 3.2 million subscribers in Q2, with 2.6 million coming from overseas.
Microsoft crossed a 72.99 flat buy point on Friday but closed at 72.78, up 1.4%. Microsoft has risen for six straight sessions.
Analysts expect the software giant late Thursday to report fiscal fourth-quarter earnings of 71 cents a share, up 3%. Microsoft revenue likely rose 7% to $24.26 billion.
Skyworks Solutions stock has climbed for the last eight sessions, finally retaking its 50-day moving average on Friday. Skyworks is in a short cup base with a potential buy point of 112.21.
Analysts expect a 23.5% EPS gain to $1.42 with revenue climbing 18% to $890 million.
Skyworks is the first Apple iPhone chip supplier to report in the current season, so Thursday night’s results and guidance will offer clues for Apple’s upcoming quarterly report and those of other iPhone chipmakers.
(Apple reports on Aug. 1. Apple’s stock is in a flat base pattern with a 156.75 buy point. Apple has risen for several sessions but closed just below its 50-day line at 149.04.)
Bank of America
Bank of America is in a cup-with-handle base with a potential buy point of 25.21. BofA fell 1.7% to 24.21 on Friday as investors reacted to earnings from JPMorgan Chase (JPM), Citigroup (C) and Wells Fargo (WFC). But BofA closed near the upper end half of its daily range.
Bank of America reports on Tuesday. Wall Street expects EPS to jump 19% to 43 cents, with revenue up 7% to $21.915 billion.
Morgan Stanley is in a consolidation with 46.08 buy point from a handle. Morgan Stanley crept past that entry on July 5, but within a couple of days had fallen below it. Morgan Stanley retreated Friday amid the first wave of bank earnings, dropping 0.7% to 45.20.
Morgan Stanley, which reports Wednesday, is expected to report a 1% EPS increase to 76 cents on revenue of $9.283 billion, up 4%.